Regulatory Alerts2024-08-12 | 82879Household Loans, July 2024
The Financial Services Commission reports that household loans rose by KRW 5.3 trillion in July 2024, driven by a KRW 5.4 trillion increase in home-backed mortgage loans. While banking sector lending slowed and nonbanking sector declines decelerated, authorities remain alert to potential borrowing surges in the Seoul metropolitan area and summer season. Financial institutions are advised to strictly adhere to the upcoming second phase of the stressed debt service ratio rule effective in September and manage loan growth within nominal GDP growth levels.
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